Looking for a Financial Advisor for Athletes?

For professional athletes, financial success extends far beyond lucrative contracts and endorsement deals. With careers that often peak early and incomes that can fluctuate dramatically, managing wealth wisely is essential to ensure long-term financial health.

However, navigating the complexities of investments, taxes, and wealth preservation can be difficult without the right expertise. Finding a trusted financial advisor who understands the unique challenges and opportunities athletes face is crucial, especially in anticipation of the inevitable career transition from the field to the sidelines.

You’ll likely find dozens of nearby financial advisors well-suited to help you reach your money goals with a personalized plan. But it may be more difficult to find a financial advisor who specializes in serving athletes.

Fortunately, many financial advisors offer virtual services so you can meet online no matter where you (or they) live. This means you can choose to hire a specialist financial advisor who lives hundreds of miles away if you decide their knowledge and experience working with athletes is a better fit to help with your unique financial planning needs.

Financial Planning for Athletes

💡 In the Q&A below, you’ll gain insights from financial advisors who work with athletes to help them make smart decisions to enjoy life more today while preparing for a comfortable retirement in the future.

🙋‍♀️ Do you have questions not answered below? Use the form on this page to submit your questions, and we’ll update this article with answers from the financial professionals and educators in the Wealthtender community. You can also contact the financial advisors featured in this article directly to set up an introductory call or ask your questions by email.

Q&A: Financial Advisors Specializing in Serving Athletes

Three Questions with Nisiar Smith

We asked Philadelphia-based financial advisor, Nisiar Smith, who specializes in serving athletes, to answer questions that often arise in conversations with his clients.

Q: What is a common financial planning challenge unique to athletes that you frequently encounter when working with your clients? How do you work with them to overcome this challenge?

Smith: One common financial planning challenge unique to athletes is managing the often unpredictable and concentrated nature of their income. Unlike traditional professionals who earn steady paychecks over decades, athletes typically experience peak earnings over a relatively short career span. For many, these earnings are concentrated in just a few high-income years, followed by a sharp decline when their playing days end. This income structure creates unique challenges in cash flow planning, tax planning, and long-term wealth sustainability.

Identifying and Addressing the Challenge

1. Cash Flow Management: Athletes may struggle to budget appropriately due to the high variability in their income and the temptation to live a lifestyle that matches their earnings during peak years.

Solution: I work with clients to create a personalized cash flow plan that prioritizes saving and investing a significant portion of their earnings during their peak years. By focusing on living below their means and setting a disciplined budget, I help them build a financial cushion to sustain their lifestyle post-career.

2. Tax Planning and Compliance: High earnings often come with complex tax situations, including multi-state taxes for professional athletes or international tax considerations for global competitors. Without proper planning, athletes can face significant tax liabilities.

Solution: I partner with experienced tax professionals to develop tailored tax strategies, ensuring compliance while minimizing liabilities. This includes planning around signing bonuses, endorsements, and other sources of income.

3. Navigating Sudden Wealth: The sudden influx of large sums of money can lead to poor financial decisions, such as impulsive spending, bad investments, or predatory financial advice.

Solution: Education is key. I guide athletes in understanding the importance of diversifying investments, protecting their wealth, and conducting due diligence on business opportunities. We work together to implement strategies like creating an emergency fund, building a diversified investment portfolio, and utilizing insurance to mitigate risks.

4. Planning for Post-Career Transitions: For many athletes, transitioning out of sports can be financially and emotionally challenging, as their primary income source disappears.

Solution: I help athletes map out their financial future beyond their playing career by setting aside funds for education, training, or business ventures. Additionally, we plan for alternative income streams, whether through endorsements, entrepreneurial endeavors, or investments, ensuring financial stability during this life transition.

Holistic Approach to Overcoming the Challenge

To overcome these challenges, I focus on building a comprehensive, long-term financial plan tailored to the athlete’s goals and values. My role extends beyond managing their assets—it’s about empowering them to make informed financial decisions. By providing ongoing education, fostering a collaborative relationship, and aligning their finances with their life goals, I help them not only protect their current wealth but also secure a prosperous future.

This approach not only mitigates the unique risks athletes face but also ensures they can transition seamlessly from their sports career into a financially secure and fulfilling next chapter.

Q: For athletes who are unsure whether or not they should hire a financial advisor at the current point in their lives, what guidance can you provide to help them make a more informed and educated decision?

Smith: Here are five areas I like to cover when speaking with athletes wondering if the time is right for them to hire an advisor.

1. Assessing Financial Complexity

Athletes often deal with financial challenges that go beyond a typical paycheck—endorsements, signing bonuses, NIL earnings (for college athletes), and investments. If you’re managing multiple income streams, navigating tax liabilities, or exploring business opportunities, the expertise of a financial advisor can be invaluable.

Guidance:
Ask yourself:

• Do I feel confident managing my finances on my own?
• Have I missed financial opportunities or made mistakes in the past?
  If your financial situation feels overwhelming or you’re unsure how to maximize your earnings, a financial advisor can help bring clarity and organization.

2. Planning for the Future

Athletic careers often peak early, with many athletes earning the majority of their lifetime income in a short time frame. Without proper planning, this can lead to financial stress after retirement from sports. A financial advisor can help you:

• Create a long-term financial plan.
• Prepare for life transitions, like retirement, starting a business, or going back to school.
• Establish a sustainable lifestyle that balances current needs with future goals.

Guidance:
If you’re not sure how your current financial decisions impact your future, it’s a good time to consult a professional.

3. Protecting and Growing Wealth

Earning money is one thing—growing and protecting it is another. Many athletes face risks from poor investments, fraud, or overspending. A financial advisor can:

• Develop an investment strategy aligned with your risk tolerance and goals.
• Protect your assets with insurance and estate planning.
• Offer unbiased advice to avoid common pitfalls.

Guidance:
If you’re unsure how to grow your wealth or safeguard it against risks, a financial advisor can provide the guidance you need.

4. Education and Empowerment

One common misconception is that hiring a financial advisor means handing over control of your money. A good advisor will educate you about your options, empower you to make informed decisions, and collaborate with you to create a financial roadmap.

Guidance:
If you’re eager to learn and grow your financial knowledge but feel you need support, a financial advisor can be both a coach and a partner in your success.

5. Cost vs. Value

The cost of hiring a financial advisor often deters athletes, especially early in their careers. However, the potential value of avoiding costly mistakes, saving on taxes, and making strategic investments often outweighs the fees.

Guidance:
Evaluate:

• Am I paying more in mistakes or missed opportunities than the cost of professional advice?
• Does the advisor offer fee-only services that align with my interests?
  If the long-term value exceeds the cost, hiring an advisor can be a wise investment.

Steps to Make an Informed Decision

1. Clarify Your Goals:
   What do you want to achieve financially—both now and in the future? Having clear goals will help determine if you need professional help to reach them.
2. Evaluate Your Current Situation:
   Do you have a clear understanding of your cash flow, taxes, investments, and risks? Are you confident in your ability to manage these areas independently?
3. Interview Advisors:
   Not all advisors are the same. Look for one who has experience working with athletes, understands your unique challenges, and offers services that align with your needs.
4. Start Small:
   If you’re hesitant, consider hiring an advisor for a specific need, like tax planning or budgeting. This allows you to experience the value they bring without fully committing upfront.

Final Thought

Hiring a financial advisor isn’t about wealth—it’s about building a strategy for long-term financial success. Whether you’re a high school athlete earning NIL income, a college athlete weighing your options, or a professional deciding what’s next, a financial advisor can provide structure, guidance, and confidence. The key is finding the right advisor who aligns with your values and goals.

If you’re still on the fence, schedule a consultation. Many advisors, including myself, offer initial meetings to discuss your situation and outline how we can help—without pressure to commit. This step alone can provide clarity and help you make the best decision for your financial future.

Get to Know Nisiar Smith, Financial Advisor for Athletes:

View Nisiar’s profile page on Wealthtender or visit his website to learn more.

Q: When you first speak with an athlete, what questions do you like to ask to better understand their unique circumstances and determine how you can best help them achieve their goals?

Smith: When I first speak with an athlete, my goal is to gain a deep understanding of their personal, professional, and financial circumstances. Every athlete’s journey is unique, so I ask a mix of open-ended and specific questions to tailor my advice and develop a financial strategy aligned with their goals. Here’s how I approach the conversation:

1. Understanding Their Current Financial Landscape

Before offering any guidance, I need to understand where they stand financially.

• What does your current income look like?
  (E.g., Are you earning from contracts, endorsements, NIL deals, or other sources?)
• Do you have a budget or system for managing your finances?
• What financial responsibilities do you currently have?
  (E.g., family support, mortgage payments, investments, or other obligations.)
• Have you worked with a financial advisor before?
  (If yes, what worked well, and what didn’t?)

Why This Matters:
This baseline helps me identify potential gaps and opportunities in their current financial strategy.

2. Exploring Their Financial Goals

An athlete’s goals are as unique as their career paths. I aim to understand what they value most.

• What are your short-term financial goals?
  (E.g., buying a house, supporting family, or starting a business.)
• What does financial success look like for you in 5, 10, and 20 years?
  (E.g., a comfortable retirement, philanthropic endeavors, or generating passive income.)
• What are your biggest concerns about money or your financial future?
• Do you have plans for life after your athletic career?
  (E.g., entrepreneurship, education, coaching, or pursuing other passions.)

Why This Matters:
Understanding their vision allows me to create a financial plan that not only meets their needs but aligns with their values.

3. Identifying Their Support System

Athletes often have a team of people who influence their decisions.

• Who are the key people helping you make financial decisions right now?
  (E.g., family, agents, lawyers, or friends.)
• Do you feel you have the right team in place to help you achieve your financial goals?
• Are there people in your circle who may depend on you financially?

Why This Matters:
Athletes often face pressure to support others or make decisions based on outside advice. Knowing their support system helps me ensure they are receiving sound, unbiased guidance.

4. Career Insights and Income Duration

Athletic careers are often short and unpredictable, which affects financial planning.

• How do you see your athletic career progressing over the next few years?
• Do you have any upcoming financial opportunities, like signing bonuses, endorsements, or new contracts?
• Have you thought about what your lifestyle will look like post-career?

Why This Matters:
The longevity of their earning potential directly impacts how aggressively we need to save, invest, or plan for the future.

5. Understanding Their Knowledge and Preferences

Every client has a different level of financial knowledge and comfort with decision-making.

• How comfortable do you feel managing your finances?
• Are there specific areas where you feel you need more education or support?
  (E.g., taxes, investments, or budgeting.)
• What’s your risk tolerance when it comes to investments?
• Do you prefer a hands-on approach, or would you rather delegate financial management?

Why This Matters:
This helps me determine the right balance of education, involvement, and delegation in our relationship.

6. Discussing Risk Management

Athletes face unique risks, from injury to sudden career changes.

• Do you have insurance coverage for injuries or career-ending events?
• Have you thought about protecting your income and assets through other risk management strategies?
• What’s your plan if your career ends earlier than expected?

Why This Matters:
Building financial resilience requires addressing risks specific to an athlete’s career.

7. Evaluating Philanthropic and Legacy Goals

Many athletes are passionate about giving back.

• Are you involved in any charitable initiatives or organizations?
• Do you have plans to create a foundation or establish a legacy beyond sports?
• How important is giving back to your community or family in your financial plan?

Why This Matters:
Aligning financial strategies with philanthropic goals ensures their values are reflected in their wealth-building efforts.

8. Gauging Their Challenges and Frustrations

Finally, I aim to understand what keeps them up at night.

• What financial challenges or frustrations have you experienced so far?
• What’s one thing you wish you could improve about your financial situation today?

Why This Matters:
Addressing immediate pain points builds trust and demonstrates the value I can bring as their advisor.

Closing the Conversation

By the end of this discussion, I aim to have a holistic understanding of their circumstances and aspirations. I explain how I can help them:

• Organize and simplify their finances.
• Achieve financial stability and independence.
• Transition smoothly from their athletic career into their next chapter.

This initial conversation lays the foundation for a personalized financial strategy and a long-term partnership designed to help them thrive both during and after their career.